Leading and lagging KPIs
by The Alternative Board (UK)
Unlock the Power of Key Performance Indicators (KPIs) for Unmatched Business Success!
Are you looking for a way to measure your business's progress and stay ahead of the competition? Look no further than Key Performance Indicators (KPIs). But did you know there are two different types of KPIs? Let's explore the world of Leading and Lagging KPIs and find out how they can help you achieve your goals.
Lagging KPIs: A Window into the Past
Lagging KPIs measure what has already happened, such as sales numbers and costs. These indicators provide valuable insight into your progress towards your goals and objectives. But what about the future?
Leading KPIs: A Glimpse into the Future
That's where Leading KPIs come in. These KPIs, such as the number of enquiries, help predict future sales and give you the ability to plan and make strategic decisions. The key difference between Leading and Lagging KPIs is that Leading KPIs indicate where you're likely to go, while Lagging KPIs only measure what you have already achieved.
How to effectively use Key Performance Indicators (KPIs) in business:
- Define your objectives: Before setting KPIs, you must define your business objectives and what you hope to achieve with them. This will ensure that your KPIs align with your overall business strategy.
- Choose the right KPIs: Select KPIs that are relevant to your business and measure progress towards your objectives. Consider using both Leading and Lagging KPIs to give you a comprehensive view of your progress.
- Make KPIs actionable: KPIs should be actionable and provide information that can be used to make strategic decisions. Focus on KPIs you can influence and act on, such as Leading KPIs.
- Set achievable targets: Set achievable targets for your KPIs to ensure that you can measure progress and determine if you are on track to meet your objectives.
- Regularly monitor and review: Regularly monitor and review your KPIs to ensure that you are on track to meet your targets and make any necessary adjustments. Use KPIs to drive continuous improvement in your business.
- Communicate KPIs: Make sure that everyone in your business knows your KPIs and understands how they impact the business. Regularly communicate your KPIs and their progress to keep everyone informed and motivated.
- Use KPIs to drive change: Use KPIs to drive positive change in your business by taking action on areas that need improvement and celebrating successes.
By following these tips, you can effectively use Key Performance Indicators (KPIs) to measure and improve your business's performance.
Maximize Your Success with Leading KPIs
Leading KPIs are the key to unlocking success. By monitoring these indicators, you can take corrective actions early and make a difference in the outcome. For example, if there aren't enough enquiries coming in, you can take steps to meet your sales KPI.
Don't rely solely on Lagging KPIs in your business planning and goal setting. Consider including one or two Leading KPIs to give you the competitive advantage and the ability to initiate corrective actions if needed.
Empower your business with the power of Leading KPIs today!
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